Philippine Update
Total Page:16
File Type:pdf, Size:1020Kb
WeeklyPhilippine Update WEEKLY UPDATE WE TELL IT LIKE IT IS VOLUME IX, NO. 47 November 19 - 23, 2018 _______ ___ _ ____ __ ___PHIL. Copyright 2002 _ THE WALLACE BUSINESS FORUM, INC. accepts no liability for the accuracy of the data or for the editorial views contained in this report.__ Political House approves P3.8 Tn budget for 2019 The House of Representatives approved the proposed P3.8 trillion national budget for 2019 "Quotes on 3rd and final reading. The approval came earlier than what was previously announced in of the Week" response to the request of the Senate. Representative Rolando Gutierrez Andaya said next year’s budget contains many amendments. One of the changes included the Presidential request to include P2 billion for military housing, which was added funds for the National Housing Authority. Rep. Andaya pointed out that programs and projects both the House and “This is not your business as usual subdivision the Senate intend to fund would be discussed when the 2 chambers reconcile their versions of political units but one with deep geopolitical repercussions especially since the Province of of the 2019 budget. He also said that all changes will be itemized and will be compliant with Palawan is right in the forefront of our West the Supreme Court decision outlawing pork barrel funds. Philippine Sea territory. Instead of having to face a single, strong provincial government ‘Imelda’s bail grant undermines poor Pinoys’ trust in courts’ which can mobilize the entire island in its own defense, China will now have the opportunity to The Sandiganbayan’s (anti-graft court) granting of bail to former 1st lady and Ilocos Norte infiltrate and influence smaller local government Representative Imelda Marcos has undermined the trust of poor Filipinos in the courts, Vice units.” President (VP) Leni Robredo said. VP Robredo again raised her concerns over the temporary freedom given to Marcos, noting that it bolsters the perception among Filipinos Senator Risa Hontiveros on voting against that justice favors the rich and powerful in the country. She reiterated that the bail set by the a measure that seeks to divide Palawan into 3 provinces. anti-graft court was a mere pittance compared to the billions of pesos the Marcos family stole from the Filipinos. “We welcome the friendship of the People’s Republic of China. But this friendship should not Duterte fires DSWD undersecretaries come at the expense of the interests of our people and our nation. Our interests should President Rodrigo Duterte sacked 3 undersecretaries of the Department of Social Welfare always come first when we deepen relations and Development (DSWD). Executive Secretary Salvador Medialdea confirmed that the with other nations, especially at a time when President terminated the appointments of Undersecretary for Protective Programs Mae Fe majority of our people continue to contend with Templa, Undersecretary for Promotive Programs Maria Lourdes Turalde-Jarabe and daily challenges brought about by elevated prices and lack of livelihood opportunities.” Undersecretary for Disaster Response Management Group Hope Hervilla. Executive Sec. Medialda said, the government expects the new secretary, Former Philippine Army chief Vice President Leni Robredo calling on the Rolando Bautista, to bring in his own team to provide better services to the public. administration to be transparent in agreements with China. SWS: Filipinos reject gov’t inaction on China militarization of West “The arbitral ruling cannot be taken away from Philippine Sea us. It will be there forever. But meanwhile, who Majority of Filipinos think it is “not right” that the government is simply letting China expand will enforce it? There is no power on Earth its military presence in the West Philippine Sea, a Social Weather Stations (SWS) survey presently that cannot enforce it.” showed. In its 3Q survey released on the eve Chinese President Xi Jinping’s state visit to Presidential Spokesperson Salvador Panelo the country, SWS said 84% of Filipinos said it was not right for Manila to simply allow on international arbitral tribunal ruling that Beijing to build and fortify its military outposts in the disputed territories. This is up by 3 recognized the Philippines sovereign rights points from 81% on SWS’ 2Q poll. The survey also found that the number of Filipinos who in the West Philippine Sea. thought that it was right for the government to strengthen its military capability, especially “For one to step up, there is no need for the the Philippine Navy, had also risen to 86% from the previous quarter’s 80%. Meanwhile, other to step out. The nation will benefit from those who believed that it was right for the government to bring the West Philippine Sea the combined skills of this good tandem. Two disputes to international bodies for a peaceful judicial settlement dropped to 71% from the workhorses are better than one.” previous quarter’s 74%. Nevertheless, 87% of Filipinos said it was important that the Senator Ralph Recto advising Senator Philippines regained control of the West Philippine Sea islands occupied by China. Honasan to retain Acting Secretary Eliseo Rio as his Senior Undersecretary in the DICT. DISCLAIMER The articles in this Philippine Weekly Update (PWU) have been culled from various media sources. We cannot, therefore, vouch for the accuracy of what is reported. The Wallace Business Forum, Inc. 1 Nov. 19 - 23, 2018 Weekly Update PH, China sign MOU on joint gas, oil development Philippine and Chinese officials signed a memorandum of understanding FINANCIAL INDICATORS Latest Week Week-ago Year-ago (MOU) on joint oil and gas development in the West Philippine Sea. The MOU was among 29 agreements signed by Manila and Beijing at the T-Bill Rates (% November 14, 2018 average) start of Chinese President Xi Jinping’s 2-day state visit in the Philippines. Based on the 2-page draft China version of the agreement, the proposed 91-day 5.172 5.077 2.148 joint exploration for oil and gas would be in accordance with the 182-day 6.245 6.233 2.563 364-day 6.521 6.506 2.952 principles of “mutual respect, fairness and mutual benefit, flexibility and pragmatism and consensus through equal and friendly consultations.” PESO DEPOSIT RATES (% p.a., October 25 – 31, 2018) The draft agreement stipulates the establishment of an inter- governmental joint steering committee and an inter-entrepreneurial Savings Deposit 5.00 5.00 0.00 working group. The committee would be led by the foreign affairs and Time Deposit Below 1 year 4.07 2.95 1.84 energy departments of Philippines and China as well as other relevant 1 - 2 years 6.09 5.93 2.41 agencies. The joint exploration contract will be executed upon ratification Over 2 years 3.06 3.13 2.65 by the committee. DOLLAR DEPOSIT RATES (% p.a., October 25 – 31, 2018) Senate to review deals with China Savings Deposit 0.25 0.26 0.20 The Senate will review the joint oil and gas exploration deal with China Time Deposit as well as 28 other agreements signed during the visit of Chinese 60 days & below 1.13 1.10 0.67 President Xi Jinping amid calls for transparency sparked by concerns 61-90 days 1.33 1.28 0.71 91-180 days 1.34 1.43 0.84 that these could compromise the country’s sovereignty or lead to a “debt 181 days & above 1.59 1.53 1.11 trap”. Senate President Pro Tempore Ralph Recto is set to file a resolution calling for a legislative review of the agreements, particularly LIBOR/SIBOR (% p.a., November 12 - 13, 2018) the memorandum of understanding (MOU) on joint oil and gas exploration in the West Philippine Sea.Presidential spokesman Salvador Libor 90 days 2.62 2.59 1.42 Sibor 90 days 1.76 1.64 1.13 Panelo promised to release details of the deals in due time or after the Libor 180 days 2.86 2.84 1.62 end of the Chinese leader’s state visit. Sibor 180 days 1.88 1.76 1.25 Economy FOREIGN EXCHANGE RATE (% p.a., November 16, 2018) PDS Weighted Ave. (P/US$) 52.91 52.63 50.91 ‘Half of Filipino households vulnerable to poverty’ Blackmarket (P/US$) 52.71 52.94 51.25 Various socioeconomic and environmental shocks, such as inflation and PDS Weighted Ave. (P/EURO) 60.07 60.63 60.28 natural disasters, now threaten to sink more Filipino households into PRIME LENDING RATE (% p.a., November 16, 2018 average) poverty and keep them there if the government fails to institute needed interventions. In a new study titled “Vulnerability to Poverty in the Bank of America 7.55 7.55 6.03 Philippines: An examination of Trends from 2003 to 2015,” state-run BPI 7.93 7.88 5.50 think tank Philippine Institute for Development Studies (PIDS) research Citibank 6.03 6.04 4.34 fellows Jose Ramon Albert and Jana Flor Vizmanos said about 48.5% of BDO 8.19 8.13 5.44 Hong Kong & Shanghai Bank 5.60 6.87 4.05 Filipino households were found to be vulnerable to income poverty if ING Bank 5.95 5.95 5.08 affected by disasters. The number was double the official poverty Metrobank 6.50 6.50 5.50 incidence of 21.6% in 2015 — the portion of the population with per PNB 8.75 8.75 7.08 capita income less than the poverty threshold. The researchers added RCBC 6.88 6.88 5.63 that the government should broaden the scope of its poverty Security Bank 6.13 6.13 6.13 Standard Chartered Bank 4.55 4.55 4.03 assessment so it can design appropriate programs that can both pull the UCPB 7.25 7.25 6.00 poor out of their situation and protect the vulnerable population from Union Bank 6.00 6.00 6.00 sinking into poverty.